Power controller manufacturer XP Power (LSE:XPP) delivered bumper full-year results today. Revenue is 29% higher than the previous year and adjusted diluted earnings per share is up 27%. Management also demonstrated their confidence in the outlook by pushing up the total dividend for the year by 10%.

XP expects a lower effective group tax rate resulting from the reduction in US corporate tax rates from 35% to 21%. In addition, it expects to receive a tax refund from the Inland Revenue Authority of Singapore. This should drive upside to our FY18 EPS forecast as well as boosting XP’s cash position.

Power control component maker XP Power said new US tax policy was expected to generate a non-cash tax credit in 2017 of around £5.2m.

The credit was as a result of the reduction in the federal tax rate from 35% to 21% and would be excluded from adjusted earnings.

The company also said it had received notice that claims relating to the Development and Expansion Incentive in Singapore had been accepted by the city state's inland revenue authority, resulting in a £1.3m refund of corporate tax paid in 2015 and 2016.

With the FTSE 100 having experienced a major bull market in recent years, it's perhaps unsurprising that there are some shares which appear overvalued. After all, investor sentiment is generally favourable and this can mean valuations soar to what could prove to be unsustainable levels.